Middle East tensions push oil higher — ride the energy rally with Exxon and Chevron
Oil prices are climbing for the third day in a row as new clashes between the US and Iran make investors worry that a peace deal will fall through. Meanwhile, a new Federal Reserve report shows inflation is heating up, largely due to rising energy costs.
Idea
With the US and Iran exchanging strikes, there is a real risk that oil supplies from the Middle East could be disrupted, which forces energy buyers to push prices higher. This geopolitical tension is directly fueling higher inflation, meaning the market will likely keep bidding up oil prices as a safe haven against rising costs. Major oil companies like Chevron and ExxonMobil directly benefit from these rising crude prices, making their stocks an attractive way to play this situation. As long as the conflict persists, energy stocks have a strong fundamental tailwind.